- Litecoin price dipped below the $100 threshold on Thursday as discussions around cryptocurrency strategic reserves dominated market narratives.
- $38 million in Litecoin short leverage significantly outweighs $11 million in active long positions, indicating potential for further downward pressure.
- Technical indicators suggest Litecoin's next support level now sits at $85.
Litecoin's price broke below the critical $100 psychological level this week, marking a 22% decline as markets reacted to updated US trade tariffs and speculation surrounding Friday's White House cryptocurrency summit. With traders increasing short leverage positions, LTC faces heightened downside risks.
Litecoin (LTC) Underperforms Against ADA and XRP Ahead of Key Policy Summit
Litecoin's bullish momentum from early February has reversed into a bearish trajectory following its exclusion from the US Crypto Strategic Reserve announced on March 2. The reserve prioritizes five specific layer-1 blockchain assets—none of which include Litecoin.
Litecoin Price Movement, March 7
Since the reserve announcement, LTC has underperformed for four consecutive trading days, dropping to a 30-day low of $98. The breach of this key support level could embolden short sellers in the near term.
Litecoin Shorts Deploy $38M Leverage as White House Confirms Ripple CEO Attendance
Traders have adopted aggressive bearish positions against LTC following its exclusion from the strategic reserve. Market sentiment shifted further as investors focused on assets aligned with the Trump administration's crypto policies ahead of Friday's White House summit.
FOX News confirmed Ripple CEO Brad Garlinghouse's attendance, highlighting XRP's strategic importance in government crypto agendas. Other attendees include Coinbase CEO Brian Armstrong and MicroStrategy's Michael Saylor.
Discussions will likely center on regulatory transparency and potential expansion of the US Crypto Strategic Reserve. Litecoin short sellers aim to capitalize on LTC's absence from these critical policy conversations.
Litecoin (LTC) Liquidation Chart | Source: Coinglass
Coinglass data reveals a growing disparity between short and long positions. Currently, $38 million in short futures positions dwarfs $11 million in leveraged long contracts—demonstrating strong bearish dominance.
While hopes remain for a Litecoin ETF approval, the White House summit and upcoming US Non-Farm Payrolls (NFP) report may dictate market sentiment in coming days. With LTC unable to maintain $100 support, the asset now faces increased downside vulnerability.
Litecoin Price Prediction: Sellers Target $85 Retest to Extend Sell-Off
Litecoin's sharp decline through the $100 support level signals accelerating bearish momentum. Bollinger Bands show heightened volatility, with LTC currently trading near $99.77—indicating oversold conditions.
Four consecutive down days erased 22.40% of Litecoin's value, with trading volume rising to 7.35 million—reinforcing persistent selling pressure. If bulls fail to reclaim $100 support, bears may push toward the next major support at $85, aligning with historical demand zones.
Litecoin Price Prediction
The Relative Strength Index (RSI) at 37.62 suggests LTC approaches oversold territory, but a decisive reversal remains elusive. The RSI's downward trajectory signals weak buying interest, while its position below the 50 midpoint favors continued downside.
Should the RSI break below 30, Litecoin could enter deep oversold conditions, potentially triggering a rebound. However, the RSI's consistent failure to hold above its 47.60 moving average underscores sustained bearish sentiment.
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A bullish reversal would require reclaiming $105, where the 20-day moving average ($120.57) converges with resistance. If buyers regain momentum, a short squeeze could force liquidations—potentially accelerating LTC toward $120. Conversely, persistent selling pressure from leveraged traders might drive Litecoin toward $85, confirming deeper bearish phases.
Frequently Asked Questions (FAQs)
Why did Litecoin drop below $100?
Litecoin's price declined due to its exclusion from the US Crypto Strategic Reserve and shifting market focus toward assets prioritized in upcoming White House policy discussions.
What's the next support level for LTC?
Technical analysis suggests $85 as Litecoin's next major support level if the current selloff continues.
How does the White House summit affect crypto markets?
The summit brings together industry leaders and policymakers, potentially shaping future regulations and institutional adoption—making assets like XRP and ADA (which align with government agendas) more attractive to investors.
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Will Litecoin recover above $100 soon?
Recovery depends on whether bulls can reclaim $105 resistance and trigger a short squeeze. Current technical indicators suggest continued bearish pressure in the near term.
What role does leverage trading play in LTC's price movement?
The $38 million in short positions versus $11 million in longs creates asymmetric pressure—amplifying downward moves when support levels break.
Are there any positive catalysts for Litecoin?
Potential ETF approvals remain a long-term positive, but short-term price action will likely respond to macroeconomic factors and regulatory developments from the White House summit.